The Role of Sub-regional Agreements in Latin American Economic Integration

Abstract

In this chapter, we contend that in today’s context of globalization, Latin American economic regional integration is no longer feasible on a broad scale. Wherever possible, integration should rely on strong sub-regional agreements, with the less-industrialized countries being aided to become the suppliers of intermediate products to the leading members of the sub-regional groups. As outlined in Urquidi (1998a, b) on which this chapter draws heavily, this would require investment and long-term financing by the latter to the supplier countries, and cooperation to upgrade technology, training and management, and assistance for middle and higher education. The UN Economic Commission for Latin America and the Caribbean (ECLAC) and other UN agencies, as well as the Inter-American Development Bank (IDB) and sub-regional financial institutions would be given a special role, working through sub-regional committees and sub-committees, and working groups.